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Fantom’s (FTM) price struggles as large-scale sell-offs by whales reveal a significant shift in market sentiment.
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Recent data points to a remarkable increase in selling activity among major investors, suggesting a bearish outlook for FTM in the near term.
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“The current trend of whale transactions indicates an overwhelming tendency towards selling, which is sharpening the downward pressure on the price,” reported COINOTAG.
This article analyzes the recent bearish trends affecting Fantom (FTM) as whale activity spikes, driving price declines and increasing market uncertainty.
Whales sell in high volumes
Data from IntoTheBlock revealed a significant increase in activity among large traders, commonly referred to as whales, for FTM over the past 24 hours. During this period, 184 whale transactions were recorded, amounting to 93.31 million FTM, valued at $74.8 million. Such a surge in activity often indicates that major market participants are either buying or selling the asset.
However, when a volume spike coincides with a price decline similar to the current case of FTM, it suggests that the majority of large transactions involve selling. To support this observation, COINOTAG analyzed additional market metrics, discovering a clear bearish sentiment dominating the market.
Large FTM holders grow wary
Data from IntoTheBlock reveals a widening gap between bullish and bearish sentiment among large FTM holders. Over the past seven days, the Bull vs. Bear metric showed that FTM had 139 bullish addresses compared to 148 bearish ones, indicating a notable shift toward bearish dominance. These addresses collectively hold at least 1% of FTM’s total supply, and recent activity suggests that selling pressure is increasing.
Additionally, the average transaction size rose sharply in the past 24 hours, reaching approximately $38,500 at press time, with the seven-day average climbing to $32,000. This points to substantial amounts likely being sold in each transaction.
As bearish sentiment among whales continued to grow and transaction sizes remained high, FTM’s price began facing additional downward pressure from retail traders.
Retail sentiment turns bearish
Retail traders in the market are showing increased bearish sentiment, with both spot and derivative participants engaging in selling activity. Spot traders have gradually started transferring FTM to exchanges, with $497,370 worth of the asset added to exchange wallets on the 7th of January. This trend suggests the likelihood of more inflows throughout the day, as traders prepare to sell.
When assets move from wallets to exchanges and the exchange net flow turns positive, it typically indicates rising selling pressure and an increase in the available supply of FTM on exchanges. Derivative traders are mirroring this bearish sentiment, with Open Interest declining steadily, dropping by 7.34% to $92.62 million in the past 24 hours.
Such a decline this signals that market participants are closing contracts, reflecting a loss of confidence as bearish sentiment takes hold. With most key metrics pointing toward a bearish outlook, there is a strong possibility that FTM may experience further declines in the near term.
Conclusion
Fantom (FTM) is facing significant downward pressure fueled by increased selling activity from both whales and retail traders. The continued bearish sentiment coupled with rising transaction volumes indicates a challenging landscape for FTM. Investors should remain vigilant as these trends unfold, as further declines could be imminent.
